> Skip to content
FEATURED:
  • Student-Success Resource Center
Sign In
  • News
  • Advice
  • The Review
  • Data
  • Current Issue
  • Virtual Events
  • Store
    • Featured Products
    • Reports
    • Data
    • Collections
    • Back Issues
    • Featured Products
    • Reports
    • Data
    • Collections
    • Back Issues
  • Jobs
    • Find a Job
    • Post a Job
    • Career Resources
    • Find a Job
    • Post a Job
    • Career Resources
Sign In
  • News
  • Advice
  • The Review
  • Data
  • Current Issue
  • Virtual Events
  • Store
    • Featured Products
    • Reports
    • Data
    • Collections
    • Back Issues
    • Featured Products
    • Reports
    • Data
    • Collections
    • Back Issues
  • Jobs
    • Find a Job
    • Post a Job
    • Career Resources
    • Find a Job
    • Post a Job
    • Career Resources
  • News
  • Advice
  • The Review
  • Data
  • Current Issue
  • Virtual Events
  • Store
    • Featured Products
    • Reports
    • Data
    • Collections
    • Back Issues
    • Featured Products
    • Reports
    • Data
    • Collections
    • Back Issues
  • Jobs
    • Find a Job
    • Post a Job
    • Career Resources
    • Find a Job
    • Post a Job
    • Career Resources
Sign In
ADVERTISEMENT
News
  • Twitter
  • LinkedIn
  • Show more sharing options
Share
  • Twitter
  • LinkedIn
  • Facebook
  • Email
  • Copy Link URLCopied!
  • Print

Default Rates for Student Loans Continue Steady Climb

By  Kelly Field
May 3, 2010

Student-loan default rates continue to rise, according to data released by the Education Department today.

The data, which reflect the percentage of borrowers who entered repayment in the 2008 fiscal year and defaulted within the next two years, show that the default rate climbed to 7.2 percent, from 6.7 percent. It was nearly three percentage points higher for borrowers in the bank-based program (7.8 percent) than for those in the competing direct-loan program (4.9 percent).

Both programs had higher cohort default rates than in 2007, when 7.2 and 4.8 percent of students with bank-based and direct loans defaulted, respectively.

We're sorry. Something went wrong.

We are unable to fully display the content of this page.

The most likely cause of this is a content blocker on your computer or network.

Please allow access to our site, and then refresh this page. You may then be asked to log in, create an account if you don't already have one, or subscribe.

If you continue to experience issues, please contact us at 202-466-1032 or help@chronicle.com

Student-loan default rates continue to rise, according to data released by the Education Department today.

The data, which reflect the percentage of borrowers who entered repayment in the 2008 fiscal year and defaulted within the next two years, show that the default rate climbed to 7.2 percent, from 6.7 percent. It was nearly three percentage points higher for borrowers in the bank-based program (7.8 percent) than for those in the competing direct-loan program (4.9 percent).

Both programs had higher cohort default rates than in 2007, when 7.2 and 4.8 percent of students with bank-based and direct loans defaulted, respectively.

As usual, the 2008 rate was higher for borrowers who attended for-profit institutions (11.9 percent) than for borrowers who attended public colleges (6.2 percent) or private colleges (4.1 percent).

ADVERTISEMENT

We welcome your thoughts and questions about this article. Please email the editors or submit a letter for publication.
Law & PolicyPolitical Influence & Activism
Kelly Field
Kelly Field joined The Chronicle of Higher Education in 2004 and covered federal higher-education policy. She continues to write for The Chronicle on a freelance basis.
ADVERTISEMENT
ADVERTISEMENT
  • Explore Content
    • Latest News
    • Newsletters
    • Letters
    • Free Reports and Guides
    • Professional Development
    • Virtual Events
    • Chronicle Store
    • Chronicle Intelligence
    • Find a Job
    • Post a Job
    Explore Content
    • Latest News
    • Newsletters
    • Letters
    • Free Reports and Guides
    • Professional Development
    • Virtual Events
    • Chronicle Store
    • Chronicle Intelligence
    • Find a Job
    • Post a Job
  • Know The Chronicle
    • About Us
    • Write for Us
    • Work at The Chronicle
    • Our Reporting Process
    • Advertise With Us
    • Brand Studio
    • DEI Commitment Statement
    • Accessibility Statement
    Know The Chronicle
    • About Us
    • Write for Us
    • Work at The Chronicle
    • Our Reporting Process
    • Advertise With Us
    • Brand Studio
    • DEI Commitment Statement
    • Accessibility Statement
  • Account and Access
    • Manage Your Account
    • Manage Newsletters
    • Individual Subscriptions
    • Institutional Subscriptions
    • Subscription & Account FAQ
    Account and Access
    • Manage Your Account
    • Manage Newsletters
    • Individual Subscriptions
    • Institutional Subscriptions
    • Subscription & Account FAQ
  • Get Support
    • Contact Us
    • Reprints & Permissions
    • User Agreement
    • Terms and Conditions
    • Privacy Policy
    • California Privacy Policy
    • Do Not Sell My Personal Information
    Get Support
    • Contact Us
    • Reprints & Permissions
    • User Agreement
    • Terms and Conditions
    • Privacy Policy
    • California Privacy Policy
    • Do Not Sell My Personal Information
1255 23rd Street, N.W. Washington, D.C. 20037
© 2023 The Chronicle of Higher Education
  • twitter
  • instagram
  • youtube
  • facebook
  • linkedin